Washington, DC, United States (4E) – Industrial output in the U.S. climbed in August as car makers and other manufacturing firms increased production, an indication that the factory sector is emerging from its slow growth.
Output at factories, utilities and mines advanced 0.4 percent after staying flat in the previous month, according to a report by the U.S. Federal Reserve released Monday in Washington.
Manufacturing, the biggest contributor to industrial production, increased 0.7 percent in August, reversing the 0.4 percent drop in July. Output in utilities slipped 1.5 percent, while mining climbed 0.3 percent.
Manufacturing comprises just less than a fifth of the nation’s gross domestic product, but the sector is closely monitored as viewed as a gauge of the general economy’s health.
Monday’s results showed that the strength in housing and auto sectors is helping boost the economy, with a measure of output in furniture and appliance rising to its highest level since 2009 and gauge for vehicle assemblies posting its fastest growth since 2007. Improving conditions in the global markets and rising consumer demand would help the sector bounce back after struggling earlier this year.
In a separate report also released Monday, the Fed showed New York area manufacturing activity expanded at a less-than-estimated pace in September even as orders and sales increased at a faster rate. The general economic index by the Federal Reserve Bank of New York slowed to 6.3 in August from the previous month’s 8.2 reading.